Investors with losses are encouraged to contact the firm before August 20, 2021; click here to submit trade information
LOS ANGELES, June 22, 2021 (GLOBE NEWSWIRE) — The Portnoy Law Firm advises investors that a class action lawsuit has been filed on behalf of Home Point Capital, Inc.(NASDAQ: HMPT) investors that acquired shares in relation to it’s January 21, 2021 initial public offering. Investors have until August 20, 2021 to seek an active role in this litigation.
Investors are encouraged to contact attorney Lesley F. Portnoy, to determine eligibility to participate in this action, by phone 310-692-8883 or email, or click here to join the case.
Home Point operates as a service provider and residential mortgage originator. From 2018 to 2020, Home Point Capital undertook aggressive expansion of their broker partner network. In the process, Home Point increased the network from 1,623 as of December 31, 2018 to nearly 5,000 as of September 30, 2020, representing an annualized growth rate of 88%. On January 29, 2021, Home Point conducted the IPO, issuing to the public 7.25 million shares of Home Point’s common stock at the offering price of $13.00 per share, resulting with proceeds of $88,123,750 to the selling stockholders before expenses and after applicable underwriting discounts and commissions.
It is alleged in the Home Point Capital class action lawsuit that Home Point’s offering documents made misleading and/or false statements and/or failed to disclose that: (i) Home Point Capital’s aggressive expansion of its broker partners would increase Home Point’s expenses dramatically; (ii) as a result of rising interest rates in 2021, the mortgage industry was anticipating decreased gain-on-sale margins industry-wide, with Home Point being subject to the same competitive pressures; (iii) Home Point had overstated its business and financial prospects, accordingly; and (iv) Home Point’s offering documents were materially misleading and/or false and failed to state information required to be stated therein, as a result.
Home Point issued a press release on May 6, 2021, announcing Home Point’s financial results for the first quarter of 2021. Home Point reported revenue of $324.2 million, among other results, missing consensus estimates by $41.72 million. Home Point’s stock price fell nearly 18% on this news, damaging investors.
A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than August 20, 2021.
Please visit our website to review more information and submit your transaction information.
The Portnoy Law Firm represents investors in pursuing claims arising from corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar